Foreclosure Auction Selling Process in Texas

By
Real Estate Broker/Owner with Texas Five Star Realty, Plano Texas

Foreclosure Conduct of Sale Process in Texas

What is a foreclosure?
Foreclosure is a process that allows the lender to take over the property when a homeowner defaults or falls behind on mortgage payments.  For complete description of what a foreclosure is and what phases does it have, please see  http://www.texasfivestarrealty.com/Foreclosure_Process.asp

Pre-foreclosure Process (Phase 1) in Texas: Notice of Sale Timelines
When a homeowner falls behind on mortgage payments, the lender will send a series of notices to the homeowners allowing them to correct the problems, otherwise its’ intention to sell the property at auction. Per Texas Property Code 51.002 these notices must be given a minimum number of days to the homeowner prior its action. These time lines are:

1)      Notice of Default (minimum 20 days)

2)      Notice of Acceleration (minimum 20 days)

3)      Notice of Sale (Sometimes combined with #2 above)

i)        Minimum 21 days.

ii)       Posted at Court House

iii)     Mailed, certified Return Receipt Requested, to debtor with address on Deed of Trust.

iv)     Filed with County Clerk

Foreclosure Process (Phase 2) in Texas:  Conduct of Sale Auction at Court Step
If the problem has not been resolved between the lender and homeowner prior to the date and time of the sale, the property will be auctioned and awarded to the highest bidder as follow:

·         Place of Sale: At designated spot in County Court House

·         Day of the Sale: 1st Tuesday of the month whether or not it falls in the weekend, holiday, new year, 4th of July, or weather condition,  etc.

·         Time of Sale: 3 hours window Between 10:00 AM-to-1:00 PM and 1:00 PM-to-4:00 PM as posted

·         Method of Payment: Exact amount with Cash, Certified cashier check/money order, or combination of all.

Conduct of Sale Foreclosure Auction at County Court Step in Texas: There are two types of foreclosure process in Texas, Judicial and non-judicial. Each one is define in detail as follow:

1)      Judicial foreclosure process in Texas:  Judicial Foreclosure in Texas
This type of foreclosure must be with court approval and conducted by Sheriff and the homeowner might have rights of redemption for a period of time. Judicial foreclosure applies to the following types of situations:   

i)        Tax Sales:  This type of foreclosure is conducted by Sheriff and the homeowner has rights of redemption as follow: (Therefore if you buy Tax Sale foreclosure you should not immediately list it for sale)

(1)    Rights of Redemption

(a)   Two (2) years if: the property is homesteads, agriculture exempt, has minerals.

(b)   Six (6) months for other cases

(2)   Home equity liens

(3)   Certain Military Debtors

(4)    Deceased Debtors

2)      Non-Judicial foreclosure process in Texas: (Typically Deeds of Trust) Non-Judicial Foreclosure in Texas
This type of foreclosure is conducted by Trustee or Substitute Trustee and controlled by Texas Statutes and terms of the Deed of Trust. There is no Right of Redemption for these types of foreclosure.
 

·         Post Sale Affidavit (by whom, what it covers, etc.)

List of Foreclosures in North Texas:
For the most up-to-date list of foreclosures (REOs) in North Texas, please visit
http://www.texasfivestarrealty.com/List_of_foreclosures.asp

 
<!-- AddThis Button END --> Click to Subscribe to our RSS Feed Subscribe to this page RSS
follow me on Texas Five Star Realty LinkedIn follow me on Texas Five Star Realty Plaxo Send ME TExt via email

<!-- End of the share and social media buttons and links displayed -->

 

close

This entry hasn't been re-blogged:

Re-Blogged By Re-Blogged At
Topic:
Real Estate Best Practices
Location:
Texas
Tags:
foreclosure
foreclosure process
judicial foreclosure in texas
nonjudicial foreclosure in texas
list of foreclosures in north texas

Post a Comment
Spam prevention
Spam prevention
Show All Comments
Anonymous
Eli

Ver usefull information. Thanks, Bahman

Dec 09, 2012 01:34 AM #1
Rainmaker
314,866
Bahman Davani, CM at Texas Five Star Realty, Plano, TX (214) 457-7055
Texas Five Star Realty, Plano Texas - Frisco, TX
Homes for Sale in Plano, Frisco, Prosper, Allen TX

Thank you, I hope this helps some buyers and real estate investors interested in buying forclosure properties.

Dec 13, 2012 09:36 AM #2
Post a Comment
Spam prevention
Show All Comments

What's the reason you're reporting this blog entry?

Are you sure you want to report this blog entry as spam?

Rainmaker
314,866

Bahman Davani, CM at Texas Five Star Realty, Plano, TX (214) 457-7055

Homes for Sale in Plano, Frisco, Prosper, Allen TX
Ask me a question   
*
*
*
*
Spam prevention

Additional Information